2016 Top Markets Report - Automotive Parts

Germany

Overview of the Automotive Parts Market in
Germany

Despite a slow economic recovery, Germany
continues to outperform other European markets.
Suppliers have not been as impacted by the
slowdown because they are often less reliant on the
growth of a single company and generally enjoy a
more global sales base. In fact, with nearly one
dozen German auto plants scattered throughout the
country, Germany hosts the largest concentration of
the 47 OEM plants located throughout Europe. In
the largest autos market in the EU, German vehicle
and parts manufacturers directly employ more than

800,000 people with a further 3 million employed

indirectly.

Volkswagen was the leader in sales in Germany for

2015 (685,000 units sold), followed by Mercedes

(286,000), Audi (269,000), BMW (249,000), Ford

(225,000) and Opel (229,000). Particularly popular

Ford models included the flagship Ford Mondeo and

the Ford Kuga. Popular Opel models included the

Astra, the compact SUV Mokka and the Opel Meriva.

Challenges and Barriers to Automotive Parts

Exports

As the world’s largest exporter specializing in high-

end manufactured goods and capital products,

Germany has been particularly hard hit by the

slowdown in both the G7 and emerging markets.

The barriers to trade that exist in Germany are

similar to the barriers that suppliers face throughout

Europe and the rest of the world. Lack of

harmonization and convergence, lack of

transparency of regulations and standards, and

tariffs are the major barriers for doing business in

Germany. These barriers, while surmountable, raise

the cost of doing business for U.S. automotive

vehicle and parts suppliers.

Type: Large Market; Large Share

Original

Equipment

Rank

5

Aftermarket

Rank

10

Germany ranks fifth on ITA’s list of top U.S. auto parts export

markets. The German automotive market seems to have finally

rebounded as the German economy has improved, and Europe,

overall, is growing at modest levels. The TTIP is expected to

breathe new life into vehicle sales and production. Hopefully, the

TTIP will eliminate tariffs and significantly reduce the costs created

by divergent regulations and standards, including costs for

additional research and development, production of EU-specific

lines, as well as testing and certification costs. In addition, both the

United States and Europe are moving ahead with collaborative

research and development of advanced technologies, which will

improve the markets for fuel efficient vehicles and advanced

automotive parts and technologies.

Figure 7 : 2015 Germany Automotive Market

Sales (units) 3,539,832

U.S. Auto Parts Exports to

Germany $1,959,900,297^

Total German Auto Parts

Imports $93,242,367,905^

Total Domestic Vehicle

Production 5,739,900^

Vehicles in Operation (^) 47,816,579
U.S. Auto Parts Export
Growth 2009-2015 (^) +57%